Thursday, 10 June 2021

Strategy Implementation Definition & Requirements of Strategy Implementation (Retail Strategy 10.06.2021)

Strategy Implementation Definition

Strategy implementation is the process by which an organization translates its chosen strategy into action plans and activities, which will steer the organization in the direction set out in the strategy and enable the organization to achieve its strategic objectives.


Strategy Implementation

Definition: Strategy Implementation refers to the execution of the plans and strategies, so as to accomplish the long-term goals of the organization. It converts the opted strategy into the moves and actions of the organization to achieve the objectives.

 

Strategy implementation is the technique through which the firm develops, utilizes and integrates its structure, culture, resources, people and control system to follow the strategies to have the edge over other competitors in the market.

 

Strategy Implementation is the fourth stage of the Strategic Management process, the other three being a determination of

(1) strategic mission, vision and objectives,

(2) environmental and organizational analysis, and

(3) formulating the strategy.

 

Requirements of Strategy Implementation

1. Institutionalization of Strategy: First of all, the strategy is to be institutionalized, in the sense that the one who framed it should promote or defend it in front of the members, because it may be undermined (weakness).

 

2. Developing proper organizational climate: Organizational climate implies the components of the internal environment, that includes the cooperation, development of personnel, the degree of commitment and determination, efficiency, etc., which converts the purpose into results.

 

3. Formulation of operating plans: Operating plans refers to the action plans, decisions and the programs, that take place regularly, in different parts of the company. If they are framed to indicate the proposed strategic results, they assist in attaining the objectives of the organization by concentrating on the factors which are significant.

 

4. Developing proper organizational structure: Organization structure implies the way in which different parts of the organization are linked together. It highlights the relationships between various designations, positions and roles. To implement a strategy, the structure is to be designed as per the requirements of the strategy.

 

5. Periodic Review of Strategy: Review of the strategy is to be taken at regular intervals so as to identify whether the strategy so implemented is relevant to the purpose of the organization. As the organization operates in a dynamic environment, which may change anytime, so it is essential to take a review, to know if it can fulfil the needs of the organization.

 

 

Even the best-formulated strategies fail if they are not implemented in an appropriate manner. Further, it should be kept in mind that, if there is an alignment between strategy and other elements like resource allocation, organizational structure, work climate, culture, process and reward structure, then only the effective implementation is possible.

 

Process of Strategy Implementation

1. Building an organization, that possess the capability to put the strategies into action successfully.

2. Supplying resources, in sufficient quantity, to strategy-essential activities.

3. Developing policies which encourage strategy.

4. Such policies and programs are employed which helps in continuous improvement.

5. Combining the reward structure, for achieving the results.

6. Using strategic leadership.

 

The process of strategy implementation has an important role to play in the company’s success. The process takes places after environmental scanning, SWOT analyses and ascertaining the strategic issues.


Aspects of Strategy Implementation

1. Creating budgets which provide sufficient resources to those activities which are relevant to the strategic success of the business.

 

2. Supplying the organization with skilled and experienced staff.

 

3. Conforming that the policies and procedures of the organization assist in the successful execution of the strategies.

 

4. Leading practices are to be employed for carrying out key business functions.

 

5. Setting up an information and communication system, that facilitate the workforce of the organization, to perform their roles effectively.

 

6. Developing a favourable work climate and culture, for proper implementation of the strategy.

 

Strategy implementation is the time-taking part of the overall process, as it puts the formulated plans into actions and desired results.

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